Many start-up SMEs, especially in the technology sector, struggle to find access to working capital, and are often not able to get banks to fund them.

Often they don’t get the money required because of some shortfall – be it information or credentials.

It is to fill this gap that Simmi Sareen, Founder & CEO, Loans 4 SME, a platform that syndicates loans for SMEs, started this venture 18 months ago, with the aim of “providing right debt capital for the right type of borrowers”. The platform enables eligible borrowers to raise resources from lenders registered with them.

Typically, the loans that these SMEs need range between ₹20 lakh-₹1 crore, which is below the radar for most banks, as they consider the ticket size very small.

That opens up opportunities for other lenders, mostly NBFCs. There are presently about 50 lenders on the platform, including NBFCs and venture debt firms that are keen to offer funding for start-ups.

Simmi says that she has kept her company focused on areas limited to technology, clean energy and healthcare.

Business has come in mainly through referrals from partnerships forged with industry associations and private equity firms.

Simmi says that the key factor in getting SMEs on board the platform is a quick turnaround time. The total turnaround time (including the time taken by lenders to provide the funds) has been around three-four weeks.

The tenor of the loans are typically between three-six months, and are often at rates between 16 and 18 per cent, said Simmi.

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